How to Manage Your Small Business with Flexible Capital

7 min read • Jun 27, 2018 • Kabbage

Something all business owners struggle with from time-to-time is access to capital. Whether they need to expand their businesses to a second or online location, hire additional staff or cover seasonal lulls, additional funding can help small business owners grow and manage their businesses. But where can they turn to for those extra funds?

Fortunately, Kabbage® is here to help in two major ways:

  1. Lines of credit2
  2. The Kabbage Card1

With a line of credit, you can maintain control of your business, avoid the potential conflicts from other forms of lending and protect your business from mixing with your personal finances. At Kabbage, we’ve extended our lines of credit to $250,0002, giving your small business even more growth opportunity.

Our lines of credit can help you manage:

  • Inventory expenses: Inventory management is essential for all small business owners. If you’re looking to expand your inventory or purchase additional products, working capital can help you cover those expenses.
  • Seasonal trends: Your small business may see some seasonal drags from time-to-time. If you need help covering rent, payroll or operational expenses during a lull, additional funding can help. You can also use extra funds to help your seasonal piques to stock up on inventory, take out extra ads, refocus your marketing campaign and hire additional staff.
  • Cash flow gaps: There may be times when you have a gap in cash flow. This could be due to seasonal trends, natural disasters, unexpected expenses or even a poor investment of funds. With a line of credit, you can help ease the gap.
  • Hiring needs and payroll: All businesses need employees, especially as they grow. If your small business is looking to take on part-time or full-time staff, but you’re held back by a lack of funding, a small business loan can help you take out job ads and cover payroll.
  • Expansion efforts: Expansion is a sign of growth, which is a sign of small business success! Whether you’re opening a second brick-and-mortar location, an online store, purchasing extra equipment to meet higher client demand or more, you’ll need extra funding to help the expansion.
  • Cover operational expenses: Sometimes you may need help covering day-to-day expenses (utilities, accounting, etc.), especially if you get hit with some unexpected costs. Flexible capital can help tide over some of these expenses to keep your small business running smoothly.
  • Manage your marketing strategy: Your marketing strategy is vital for reaching more consumers. If you don’t have a marketing manager, consider using funds to hire one or to outsource a contract worker, freelancer or agency. Marketing is how you build your brand and how customers find you.

Managing your small business is a lot of work, and you don’t have to do it alone. Lenders are here to help you manage your small business, and at Kabbage, we want to help you grow as a small business owner.

Applying for a Kabbage line of credit is free, and if you qualify, you’re under no obligation to take funds. In fact, your loan fees don’t begin until you pull funding from your account. You can pull funds in three convenient ways: through the Kabbage App, on your dashboard and through the Kabbage Card1.

With the Kabbage Card1, the freedom of flexibility is here. Kabbage customers now have funding at their fingertips, 24/7. It can be used anywhere Visa is accepted, and there are no minimum transaction amounts or maximum number of swipes per day.

Keep in mind that the Kabbage Card1 is not a credit card, so using it will not impact your personal credit. It’s simply another, faster way to access your existing Kabbage line of credit.

The card draws directly from the business’s existing Kabbage line of credit, borrowing exactly the amount they need, whenever they need it with a simple swipe. Each swipe generates a six-month loan at the exact amount of the purchase with the customer’s existing rates for a 6 month loan.

Unlike a credit card, the Kabbage Card1 also offers more flexibility to use funds. Credit cards often come with high annual percentage rates. The Kabbage Card1 comes with no annual fee or additional fees or rates, meaning you’re getting additional access with no additional risk or cost.

Kabbage looks at a wide variety of factors to determine your business’ qualification, and if you already have a Kabbage line of credit, applying again is not necessary.

Approved Kabbage customers can receive their Kabbage Card1 for free by logging into their dashboard and requesting the card. Once they receive their card in 7-10 calendar days, they log back into their dashboard, agree to the cardholder and enrollment terms, activate their card and set a secure pin. Then, they’re good to go!

If you’re ready to expand your business, bring on new hires, cover cash flow gaps or need additional funding in general, look no further than the Kabbage Card1. Apply today for a Kabbage line of credit to receive access to this flexible, fast, convenient way to access funding for your small business2.

Disclaimers

  1. The Kabbage Card is issued by Republic Bank & Trust Company, Member FDIC, pursuant to license by Visa U.S.A., Inc. See the Cardholder Agreement for Terms & Conditions including fee schedule details. See Kabbage Card Program Agreement for details and conditions.
  2. Credit lines and pricing are subject to periodic review and change, including line reductions, line increases, or line eliminations. This is not a revolving account. Individual requests for capital are separate installment loans. All loans are subject to approval. Kabbage can approve you in minutes for up to $150,000 when we are able to automatically obtain your business data and verify your bank account. Lines of credit over $150,000 require a manual review. In some situations, errors may occur during the sign up process, or we may need to send micro-deposits to confirm your bank account for security purposes. If this is the case, it may take up to several days to provide you access to funding. Frequently Asked Questions.

All Kabbage® business loans are issued by Celtic Bank, a Utah-chartered industrial bank, Member FDIC. Terms, conditions, features, availability, pricing, fees, service and support options subject to change without notice. All loans are subject to credit approval.

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